Law
6
Introduction
This case study relates to Mark, an employee of Turnip Plaza Hotel who worked as a skillful tour guide in Michigan. His responsibilities included guiding tourists in camping adventures, hiking, and extreme Kayaking to Colossal Corporations which is part of Turnip Hotel. His good diligence never went unnoticed when a rival company, Huron Overnight Inn gave Mark a job offers through Stacey a senior employee in this rival firm. One of the employees in the Huron Overnight Inn, turned to Edward Griffin, Mark’s Superior in Turnip Hotel and disclosed the job offer. Edward enticed Mark with a 50% pay rise offer that later turned the deal sour due to a corporate restructuring in the firm that led to dismissal of Mark in Turnip Plaza after he turned down the Stacey’s offer. The corporate restructuring detailed had them concern about the increase in liability risks associated with management of high adventure tours through Colossal Hotels. The ethical challenge is that Mark had not taken any formal action regarding the holding of Turnip Plaza accountable to Edward Promise.
Mark and Edward may have had an implied contract, however the defense against enforcement of an oral agreement is that it was never intended to be a legally enforceable agreement. If Mark successfully argues that his benefit of a 50% pay raise for a guaranteed contract was combined with an intention to be bound by the contract, then this theory could work. The most likely legal theory that Mark would use to try to enforce Edward's promise is a breach of contract, which has the following elements: (1) the existence of a valid and enforceable contract, (2) parties who are competent to contract and consent to all terms, (3) one party performing an action required by the contract, (4) another party failing to perform obligations they promised in the contract and without reasonable excuse.
Mark could use the theories of unjust enrichment and promissory estoppel to enforce Edward's promise. To use a theory of unjust enrichment, Mark must prove that he was conferred a benefit by Edward's promise and that it would be unfair for him not to receive full compensation for the benefit (due to his legitimate reliance on the promise). The elements are an act, a promise or gift, and an acceptance of the act or gift. The second theory is unfollowable obligation due to Edward's reliance on the implied condition that he would receive what he was promised if he went ahead with his fit-out plans.
In general, the elements required for such a claim include: (1) an offer and acceptance; (2) consideration; (3) an object or purpose; and (4) legality. Mark could enforce the law in several ways (Eisenberg, 2018). The legal theories for such an enforcement are contract, tort, bailment, and unjust enrichment. Mark may have a claim for unjust enrichment in the case where he has paid for all of Edward's work and is therefore entitled to any further benefit from Edward's promised pay rise.
If Mark were to file a lawsuit and win, what sort of damages or other remedies might he be entitled to? Include your reasoning and any evidence that led you to your conclusions.
The best way to answer this question is by saying that Mark might be entitled to recovery for his mental anguish and humiliation he suffered because of the wrongful termination. 1) Mental Anguish: This is a general tort action which can be construed as damage caused by other tortious actions. Mental anguish refers to a form of emotional distress caused by such things as physical abuse or a causing offense. It is not required that the plaintiff has been in direct contact with the defendant; rather, it can also be implied from verbal statements made by them (the defendants). 2) Humiliation: Humiliation is a form of mental anguish and distress caused by shaming, degrading, or putting down another person; it may also be expressed in terms of public humiliation.
Mark is entitled to damages for his lost employment with Turnip Plaza Hotel due to Stacey’s malicious and negligent acts. He could sue for loss of income and any benefits such as stock options and rights to increases in the future. Also, he could sue for interest or a return of the money he lost if he missed out on the stock options because of Stacey's actions. Mark can sue for damages as he has been unfairly and discriminately treated by the hotel and its management after the 50% pay rise offer did not materialize. He could also seek recovery of any losses incurred due to the restructuring that led to his abrupt dismissal.
Mark has a strong case against his employer for breach of contract, for the 50% pay rise offer that did not materialize after the restructuring. Mark can also file a case against Edward for fraud since he was lured into a job at Huron Overnight Inn by fraudulent representation. In terms of actual damages, Mark may not be able to recover any lost wages as he would have gotten paid by Huron Overnight Inn had he accepted their offer. He may be able to recover loss of future potential earnings or bonus incentives which he could have earned but did not under Turnip Plaza hotel.
Mark would be entitled to punitive damages accrued to Turnip Hotel if he were to file a lawsuit and win, as the law provides for punishment and retribution for intentional acts. There is evidence that the executive at Turnip Plaza Hotel purposely tried to sabotage Mark’s career and that there was some form of malice involved.
Mark may seek for damages and remedies under the Tort Law because he would have a cause of action against Stacey, his employer, and Huron Overnight Inn their competitor. He could sue the two companies under tort law; the reason is that both companies have been involved in intentional acts which resulted in great damages done to him. Furthermore, under tort law there are different types of legal actions that could be pursued against Stacey and Huron Overnight Inn if found guilty by a court of law. Under contract law, contract interpretation rules apply given both parties offer was never honored by any party after being accepted.
The damages that Mark can claim is a return of the 50% increase he was promised and compensation for the mental anguish and frustration he has suffered. Since Mark had worked under good conditions for over 6 years up until the event of corporate restructuring, it can be said that he has worked for Turnip Plaza Hotel as a loyal employee in good faith who did not deserve to be treated in this manner even if changes are implemented. The breach of contract by Edward is a violation of several laws (Eftekhar Jahromi and Abdolkarimi, 2018). Based on Michigan state law, a corporation is responsible for their employees’ actions, even if said employees are acting outside the scope of their employment. This means that Edward is legally obliged to pay Mark for damages caused because of his actions. When considering the evidence related to this case, this was not an isolated incident – according to Mark’s complaint, he has been fired from two different companies within 7 months (Turnip Plaza and Huron Overnight Inn).
Mark might be entitled to general damages for emotional pain, suffering and mental health expenses due to being fired from the job. Despite, this being controversial if Mark has the evidence to support the claims, Mark may receive compensation for such accusations from Turnip Hotel Management. Should Mark file a lawsuit and win, he may be entitled to damages, such as lost wages and benefits, emotional distress, and punitive damages, if they are proven to be appropriate in the context. He might also be entitled to lost wages for the duration of his employment with Turnip Plaza Hotel as well as extra benefits promised by Edward such as bonuses and profit-sharing contributions.
Finally, regardless of the legal implications, the vice president would like your view on the ethical issues. Does Turnip Plaza have an ethical obligation to fulfill the promise made by Edward to Mark? Is it right to lay off Mark under these circumstances? What should Turnip Plaza do from an ethical perspective? Use ethical theory and principles to analyzes these questions.
Turnip Plaza Hotel has a moral responsibility to fulfill the promise it made, verbally and in writing, to Mark. Moreover, two days before terminating his employment, Edward had promised Mark a promotion and increased pay in addition to the guarantee of permanent employment. The fact that Turnip Plaza makes good on this promise un-likely at best, is also an ethically questionable move. True, Huron Overnight Inn cannot be compared in terms of size with Turnip Plaza, but they too have a policy of not laying off employees during layoffs. If one hotel can maintain such policies why can’t others (Quang Trinh, 2022).
Mark has a legal right to be hired by Huron Overnight Inn but if he accepts this position and goes against the promise, he made to Turnip Plaza, it could amount to fraud. This kind of action may put him at risk of losing his job with the former employer. As ethical reasoning principle suggests, an action does not become unethical simply because it is illegal but rather because it is unjust or harmful for others. Employers will have to consider these guarantees to avoid such ethical dilemmas in the future. In turn, honesty is defined as the quest for truth and belief in the obligation not to deceive others by withholding or misrepresenting information. Honesty is also linked to respect for oneself because it respects others by not giving them false impressions or misleading beliefs about oneself.
Although Mark was laid off, his contract of work was terminated due to a corporate restructuring in Turnip Plaza Hotel. As such, the vice president would like your view on the ethical issues. There was an ethical obligation on Turnip Plaza's part to fulfill the promise made to Mark, who had given up a job offer at Hurricane Overnight Inn as well as given up his current position at Huron Overnight Inn because of Turnip's promise. It is not right to lay off Mark under these circumstances because it would put him in great hardship financially due to being unemployed for a long period and having no offers from new employers that may be willing to give him a job after he lost his current one due to Turnip Plaza's actions against him.
Research, facts, and law come together in this case. I have done a thorough analysis on the facts as presented by Stacey and Edward and from the law as it is written to conclude that the defendant’s argument has no basis. With related ethical concerns expressed to Vice President Dodger, he should heed these concerns about researching employed persons for their own company regardless of any benefits promised or threaten that might be spelt out.
The research findings are related to how the facts and law came together in this situation, how is the analysis findings related to the arguments in this case study and how they consider ability of the ethical aspects in the case study. The ethical concerns expressed to Vice President Dodger in relation to the research were related mostly to confidentiality aspect and use of company funds for purpose of research without clearance from board members. In this case study, the ethical concerns expressed to Vice President Dodger in relation to the research were an employee who was enticed and later dismissed from his employment after he refused a job offer from his competitor. The case study also points out that Edward had a 50% pay rise offer for Mark but it did not come to fruition after corporate restructuring led to decimation of mark in Turnip Plaza.
The ethical principles of loyalty and justice are applicable here. Edward must uphold his promise to Mark, as he made it in good faith. At the same time, Edward can't decide unilaterally that he will be getting rid of employees without consulting his superiors, as this shows a lack of accountability. Furthermore, this will affect their relationship with the employees since it clearly contradicts what they have done in the past. Ed should bring these issues up with his superiors before any layoffs take place so that they can be informed and discuss possible solutions. Business ethics is a branch of applied ethics. It is the study of how people in business address ethical dilemmas and make ethical decisions. Business ethicists who are also philosophers may also apply principles from normative ethics to real life situations, as well as interpret moral behavior. Business ethicists who are not professional philosophers (such as corporate practitioners, consultants, and case writers) face a different task: combining insights from both normative ethics and applied philosophy to solve problems of leadership faced by managers and workers in the real world or in hypothetical scenarios (Eftekhar Jahromi and Abdolkarimi, 2018).
From: Bob Courtney, Senior Strategist at Colossal Corporation
To: Ken Dodger, Vice President at Colossal Corporation
Good morning, sir,
Hope you had to time to review the case study that highlight an ethical challenge associated with a former employee, Mark at Turnip Plaza Hotel. The described incident highlighted some ethical challenges directly linked to contract formation & its implementation that demands proper remedies related to Contracts because of their intertwining nature with law. There are pertinent thoughts that related to the case which note the prompting of proactive steps to avoid the replica of such cases in the corporation.
This document addresses findings from this research from the legal theories to the damages and the legal implications. The analysis comes out in the Ethical rationale that links the research with law that uses arguments rooted to justice and loyalty to explain the interconnection with the ethical framework. From the case study, the conclusion is that The Turnip Plaza Hotel should not break their promise with Mark because they promised him the pay raise and it is unethical to go back on your word. It is wrong to lay off Mark under these circumstances because he helped increase the sales nationwide and Michigan within a year of joining them. This shows that he played a significant role in their business and his actions were for the benefit of their customers as well as helping them save costs making it justifiable for Turnip Plaza to give him some benefit since, he deserved it by this action.
REFERENCES
Eftekhar Jahromi, G., & Abdolkarimi, H. (2018). Studying of theories issued in nature of presale contract with the focus on Building Presale Act (Enacted in 2011). Journal of Law Research, 21(81), 11-33. doi:10.1093/97801342443254
Eisenberg, M. A. (2018). Foundational principles of contract law. Oxford University Press. doi.10.1093/9780199731404.001.0001
Quang Trinh, V. (2022). Theories in Corporate Governance. In Fundamentals of Board Busyness and Corporate Governance (pp. 1-17). Springer, Cham. doi.1037/0067/003591.29